Thai coalition parties propose zero-based budgeting for efficiency

[snoop1130]

 

The implementation of zero-based budgeting (ZBB) has been proposed by the Move Forward Party (MFP) as part of a 23-point memorandum of understanding signed by eight political parties seeking to form a new coalition government. The MFP argues that the current budgeting system fails to address the public’s needs due to bureaucratic hurdles.

 

ZBB requires state officials to justify expenses for a new period, rather than relying on the previous year’s budget and adjusting it as necessary. The goal is to increase budget efficiency by starting from a “zero base” and analysing every function within an organisation based on its needs and costs. This approach ensures that budget allocations are appropriate and responsive to urgent needs and challenges each year.

 

An anonymous government expenditure official revealed that the Budget Bureau has already applied the ZBB concept when preparing budgets, particularly for new investment budgets not tied to existing projects. According to the Annual Budget Expenditure Act, government agencies requesting project funding must answer questions about the project’s purpose, beneficiaries, and expected outcomes.

 

ZBB offers several advantages over traditional budgeting, such as lower costs, budget flexibility, and alignment with national strategy and the country’s needs. However, it also presents challenges, as the process is more time-consuming and may result in budget spending delays. The earliest projected implementation of the ZBB process is fiscal 2025 or 2026, reports Bangkok Post.

 

By Alex Morgan

Caption: Photo Courtesy of Istock

 

Full Story: https://thethaiger.com/hot-news/economy/thai-coalition-parties-propose-zero-based-budgeting-for-efficiency

 

-- © Copyright Thaiger 2023-06-07

 

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[Srikcir]

9 hours ago, snoop1130 said:

ZBB requires state officials to justify expenses for a new period, rather than relying on the previous year’s budget and adjusting it as necessary

 

9 hours ago, snoop1130 said:

The earliest projected implementation of the ZBB process is fiscal 2025 or 2026, reports Bangkok Post

So it looks like the FY 2024 budget will default to the FY 2023 budget which obviously reflects PM Prayut's agenda, hijacks MF's progressive agenda, and will not be adjusted for 2023 inflation?

If so, there's got to be a more timely method of budgeting process for a new incoming administration, apart from making the EC more responsible to make all its election challenges concluded PRIOR to Election Day. 

[hotchilli]

11 hours ago, snoop1130 said:

ZBB requires state officials to justify expenses for a new period, rather than relying on the previous year’s budget and adjusting it as necessary. The goal is to increase budget efficiency by starting from a “zero base” and analysing every function within an organisation based on its needs and costs.

What a novel idea... justify the millions of baht allocate each year.

AKA Cap-Ex application in some countries.

[mfd101]

Wow! The bureaucratic dinosaurs will hate that. Probably a few hundred thousand bureaucrats in to the wastepaper basket along the way ...

 

But a huge leap forward for Thailand if MFP can achieve it (over several years no doubt).